Strong market positions and brand names; Diversified product offerings; Geographic diversification; and Little near-term EBITDA margin improvement as weaker foreign currency exchange rates offset ongoing cost reductions. Solid cash flow-generating ability, despite exposure to weakening foreign currency exchange rates; Stable cash flow ratios despite ongoing sizeable share repurchases, including debt to EBITDA of 2x to 2.5x and funds form operation (FFO) of 30% to 35%; and Growing debt balances as the company funds future share repurchases in excess of discretionary cash flow generation with debt. The outlook on Purchase, N.Y.-based food and beverage company PepsiCo Inc. is stable. The outlook reflects our expectation that the company will maintain stable cash flow ratios, despite somewhat lower operating earnings due to unfavorable
